Can I contribute to my employees' RRSP+ instead of offering a cash bonus?

Yes. In fact, this is a great way to give more to your employees. Amounts you pay your employees in the framework of an RRSP+ contribution program are not included in your payroll taxes.¹ Unlike traditional bonuses, these contributions have no impact on your deductions and employer contributions.

What's more, your employees will benefit from an additional 30% in tax savings2 on your voluntary contribution and on their own contributions, as long as the maximum annual amount eligible for tax credits has not already been reached.

To learn more, read our article on the subject.

Legal Notes
Payroll taxes charged to the employer include the Québec Pension Plan (QPP), Employment Insurance (EI), the Québec Parental Insurance Plan (QPIP), the Health Services Fund (HSF) and the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST). Certain contribution rates vary according to the employers specific situation.
The acquisition of shares of the Fonds de solidarité FTQ may give rise to labour-sponsored fund tax credits. The tax credits amount to 30%, namely 15% at the Quebec level and 15% at the federal level, and are limited to $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ. On March 1, 2024, The Government of Québec announced in Information Bulletin 2024-3 that tax legislation would be amended to postpone by three years the rule providing that the tax credit would be available only to individuals whose taxable income for a given taxation year was below the highest tax rate. Please note that this postponement may be subject to legislative changes.
Please read the prospectus before buying Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the Website, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.